DoD's $18M Bagram HQ Complex Construction Awarded to Undisclosed Foreign Entities Under Full and Open Competition

Contract Overview

Contract Amount: $18,027,167 ($18.0M)

Contractor: Foreign Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2010-02-12

End Date: 2013-09-29

Contract Duration: 1,325 days

Daily Burn Rate: $13.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT HQ COMPLEX IN BAGRAM, AFGHANISTAN

Plain-Language Summary

Department of Defense obligated $18.0 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: CONSTRUCT HQ COMPLEX IN BAGRAM, AFGHANISTAN Key points: 1. Significant investment in critical infrastructure for military operations. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk associated with foreign awardees and undisclosed entities requires scrutiny. 4. Construction sector spending, particularly in overseas contingency operations.

Value Assessment

Rating: fair

The contract value of $18M for a headquarters complex is substantial. Benchmarking against similar overseas construction projects is difficult without more detail on the scope and location, but the price appears within a reasonable range for complex, high-security facilities in austere environments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the award to undisclosed foreign entities raises questions about the transparency of the price discovery process and whether the best value was truly achieved.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure. While competition was intended to ensure value, the lack of transparency regarding awardees and potential cost overruns due to unforeseen circumstances in a high-risk environment could impact overall taxpayer benefit.

Public Impact

Ensures operational capacity for military personnel in Afghanistan. Supports long-term presence and mission effectiveness in a key region. Potential for job creation, though primarily for foreign labor. Highlights the complexities and costs of overseas military construction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency on awardee identity.
Potential for cost overruns in high-risk environment.
Difficulty in verifying performance and quality from foreign entities.

Positive Signals

Awarded under full and open competition.
Addresses critical infrastructure needs.
Firm fixed price contract limits cost escalation risk.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for overseas military installations. Spending in this area is often driven by geopolitical needs and can be significantly higher than domestic projects due to logistical challenges, security requirements, and specialized labor.

Small Business Impact

The data indicates the award went to foreign entities, suggesting no direct benefit or subcontracting opportunities for U.S. small businesses on this specific contract. The focus was likely on specialized capabilities or logistical advantages for overseas operations.

Oversight & Accountability

Oversight of overseas construction projects is critical due to logistical complexities and potential for fraud or waste. The Department of the Army's contracting activity suggests internal oversight mechanisms are in place, but the specifics of monitoring foreign awardees and project execution are key to accountability.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of transparency regarding awardee identity.
Potential for cost overruns due to operational environment.
Challenges in performance monitoring and quality assurance.
Geopolitical instability impacting project continuity.
Difficulty in verifying compliance with U.S. standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.0 million to FOREIGN AWARDEES (UNDISCLOSED). CONSTRUCT HQ COMPLEX IN BAGRAM, AFGHANISTAN

Who is the contractor on this award?

The obligated recipient is FOREIGN AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $18.0 million.

What is the period of performance?

Start: 2010-02-12. End: 2013-09-29.

What specific criteria were used to evaluate bids and select the foreign awardees, given the lack of disclosed information?

The evaluation criteria for this contract are not publicly detailed. Typically, under full and open competition, factors include technical approach, past performance, price, and socioeconomic considerations. However, for overseas contracts with foreign awardees, specific security clearances, logistical capabilities, and compliance with local regulations would also be paramount. The lack of transparency here makes it impossible to confirm if the selection process was robust and truly favored the best value for the government.

What are the primary risks associated with awarding a significant construction contract to undisclosed foreign entities in a combat zone?

Key risks include challenges in oversight and quality control, potential for corruption or bribery, difficulty in enforcing contract terms or addressing disputes, and security vulnerabilities related to the awardees themselves. Furthermore, the lack of transparency hinders public trust and makes it difficult to assess whether taxpayer funds were used efficiently and effectively, especially concerning potential cost overruns or substandard work.

How does the firm fixed price contract mitigate risks for the government, considering the challenging environment of Bagram, Afghanistan?

A firm fixed price (FFP) contract shifts the risk of cost overruns to the contractor. This means the government is obligated to pay the agreed-upon price regardless of the contractor's actual costs. While this protects the government from unexpected price increases, it doesn't eliminate risks related to schedule delays, quality issues, or contractor default, which are heightened in complex overseas environments like Bagram. The contractor bears the financial risk of cost escalation.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912ER09R0036

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $18,027,167

Exercised Options: $18,027,167

Current Obligation: $18,027,167

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline